Thread: X-Rated IBs and OBs

Originally Posted by ;

Hello and thanks for discussing

The question I want to ask what's your trading time? Because I will see many times IB's are forming throughout Asian session when the market is not so active for this pair..As to your charts it's seems like transactions have been accepted place somewhere between 4-6 a.m., but maybe I'm blind a tiny so what's your tme zone or do you trade in the nighttime?

Thanks!

Take care,
TheThing

Edit: Sorry, missed your trading zone at article #1. .

You are right. The majority of my trade entrances are only ahead of the Open of London session soon after the open. Once I place the transaction, I go back to bed.
Like you mentioned, IBs and OBs do not form very often during high volatility, that's the reason I start searching to get IB/OB 2 hours before the start of the London session. The earliest I have entered the market is at 7:00am.

Here is an example of how you can wait for the next candle in the event the first one after the confirmation candle fails.

Originally Posted by ;

Just wondering, can you reveal a trade that lost?

andersenws

Sure. Every trading platform has a loser.



I learnt from this trade that the IB/OB has to be the same color as the confirmation candle (ie: bull in this instance ).

You only get a couple of signals (at maximum ) per day. But since you're trading in a longer timeframe, it'd be tough to miss, particularly those trading the London session. If not, you can try this with different pairs and allow me to know how it goes.

This system has a high WIN/LOSS ratio. That's why the TP/SL ratio isn't that high.

Mazdaz,

currently I am forward testing a somewhat similar system, where I place myself right into an increasing trend using ADX following an inside bar, much like you can.
What I really do diffently is not to await a variety of affirmation candles following the inside bar. Instead I look at the market direction (EMA60 on current TF and one TF up) and place a buy or sell order one pip above or under the low or high of the outside pub.
SL is the low or high of the exterior bar plus or minus spread.
TP is not a fixed value, instead I trail the position, until a new inside bar (or a range of inside bars) breaks its new exterior bar against my position.

Good luck with your system, I will be following this thread with interest.

I implemented this trading platform on GBP/USD, based on the shape and curve of the -d1 and d1, '' I do not think it's a fantastic entry. Additionally, the ADX is under 40. As soon as I attempted this on EUR/CHF, it meet the criteria for an entrance. I will check on it at another five or six hours.

Originally Posted by ;

I implemented this trading system on GBP/USD, dependent on the shape and curve of this -d1 and d1, '' I don't think it's a good entry. Additionally, the ADX is under 40. As soon as I tried this on EUR/CHF, it fulfill the criteria for an entrance. I will check in the next five or six hours on it.

Concerning the GBP/USD

Actually, 17:00GMT candle is an OB. The affirmation candle is an Bear candle. If the current bar goes 5 pips under the low of this verifiion candle, then it's a valid signal. Remember, you just need to fulfill one of both criteria. And on this case, ADX line above 40.

But I really don't exchange this session, therefore I will stay out of this.

Define a confirmation pub.
Thanks

Originally Posted by ;

I also want to track my stops because the price goes a long way with the same trend, more frequently than not. However, my broker (Oanda) don't do Trailing Stops.

for order implementation I'm with the same broker, so currently I'm on guide... However they have an API and order volume would be big enough to not have to pay those API fees. The current plan is to continue testing and - if I wish to take it any farther - to develop an appliion for it.

Originally Posted by ;

Short
Wait until another candle (confirmation candle) has fully shaped and is still a bear candle. Afterward, a fantastic entry point is when the 1st or 2nd candle following the confirmation candle goes 5 pips reduced. Additionally, at this entrance point ONE of the following criteria should be met:ADX line (Yellow line) over 40. -DI line (Red dotted) crosses over DI line (Green dotted) ADX line (Yellow line) curving up at entrance.

In the aforementioned:
5 pips lower compared to the OB or 5 pips lower compared to the confirmation candle?